Legal director’s comments on acquisition

A legal director recently mentioned that their approval was not required for a recent acquisition, and the operation moved forward without it. This indicates that the legal team's role in such decisions is being treated as secondary.

Legal team’s role in decision-making

The legal team’s analysis was considered a minor factor in the decision, and they have pointed out the need for a more strategic approach. This suggests that while lawyers are competent in their roles, their influence in major business decisions is decreasing.

Business decision-making process

Business decisions typically follow a structured process: identifying the problem, gathering data, analyzing options, recommending a course of action, and supporting its implementation. Lawyers are often involved in the data collection and analysis steps but are less engaged in the initial problem definition, recommendation, and implementation phases.

Expectations from legal teams

Management expects lawyers to anticipate issues, frame them in a business context, recommend options, and support implementation. AI is increasingly seen as a tool that can help lawyers meet these expectations by enhancing their strategic input.

AI’s role in defining problems

In the problem-definition stage, AI can simulate scenarios of disruption, such as shifts in data ownership or the commercialization of algorithms in competitive markets. This helps lawyers better understand and prepare for potential legal challenges.

AI’s support in data collection and analysis

AI can assist lawyers in collecting and analyzing data by identifying legal patterns, correlating clauses and risks, and presenting similar cases. This supports more informed and strategic decision-making.

AI’s role in recommending and implementing decisions

AI can help lawyers communicate recommendations more effectively by tailoring written and oral presentations to the audience. It can also aid in drafting legal documents and supporting interactions with regulators, which are crucial for implementation.

Lawyers’ need to reclaim influence

To regain influence, lawyers must identify areas where they have lost impact and develop strategies to re-engage in the decision-making process. This includes understanding internal clients’ expectations, mapping key decisions, and adopting a Start Small / Scale Fast approach.

AI as a strategic tool for lawyers

AI is not replacing lawyers but providing them with tools to focus on strategic aspects of decision-making. Legal departments that adopt AI can evolve from being purely legal advisors to active participants in shaping business strategies.